Ingram Micro 2001 Annual Report Download - page 17

Ingram Micro Inc. Consolidated Balance Sheet
(Dollars in 000s, except per share data) Fiscal Year End 2001 2000
Assets
Current assets:
Cash and cash equivalents $ 273,059 $ 150,560
Investment in available-for-sale securities 24,031 52,897
Accounts receivable:
Trade accounts receivable 1,760,581 1,945,496
Retained interest in securitized receivables 537,376 407,176
Total accounts receivable (less allowances of $79,927 and $96,994) 2,297,957 2,352,672
Inventories 1,623,628 2,919,117
Other current assets 238,171 294,838
Total current assets 4,456,846 5,770,084
Property and equipment, net 303,833 350,829
Goodwill, net 508,227 430,853
Other 33,101 57,216
Total assets $ 5,302,007 $ 6,608,982
Liabilities And Stockholders’ Equity
Current liabilities:
Accounts payable $ 2,607,145 $ 3,725,080
Accrued expenses 279,669 350,1 1 1
Current maturities of long-term debt 252,803 42,774
Total current liabilities 3,139,617 4,117,965
Convertible debentures 405 220,035
Revolving credit facilities and other long-term debt - 282,809
Senior subordinated notes 204,899 -
Deferred income taxes and other liabilities 89,788 113,78 1
Total liabilities 3,434,709 4,734,590
Commitments and contingencies (Note 10)
Stockholders’ equity:
Preferred Stock, $0.01 par value, 25,000,000 shares
authorized; no shares issued and outstanding - -
Class A Common Stock, $0.01 par value, 500,000,000 shares
authorized; 149,024,793 and 75,798,115 shares issued
and outstanding in 2001 and 2000, respectively 1,490 758
Class B Common Stock, $0.01 par value, 135,000,000 shares
authorized; 0 and 70,409,806 shares issued
and outstanding in 2001 and 2000, respectively - 704
Additional paid-in capital 691,958 664,840
Retained earnings 1,227,945 1,221,208
Accumulated other comprehensive loss (53,416) (11,936)
Unearned compensation (679) (1,182)
Total stockholders’ equity 1,867,298 1,874,392
Total liabilities and stockholders’ equity $ 5,302,007 $ 6,608,982
See accompanying notes to these consolidated financial statements.
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Management’s Discussion and Analysis (continued)
The value of foreign currency options does not change on a one-to-one basis with changes in the underlying currency rate. The potential
loss in option value was adjusted for the estimated sensitivity (the “delta” and “gamma”) to changes in the underlying currency rate. The
model includes all of our forwards, options, cross-currency swaps and nonfunctional currency denominated debt (i.e., our market-
sensitive derivative and other financial instruments as defined by the SEC). The accounts receivable and accounts payable denominated
in foreign currencies, which certain of these instruments are intended to hedge, were excluded from the model.
The VaR model is a risk analysis tool and does not purport to represent actual losses in fair value that will be incurred by us, nor does it
consider the potential effect of favorable changes in market rates. It also does not represent the maximum possible loss that may occur.
Actual future gains and losses will likely differ from those estimated because of changes or differences in market rates and
interrelationships, hedging instruments and hedge percentages, timing and other factors.
The following table sets forth the estimated maximum potential one-day loss in fair value, calculated using the VaR model (in millions).
The decrease in VaR from interest rate sensitive financial instruments reflects a change in the composition of our portfolio from
December 31, 2000 to December 29, 2001. We believe that the hypothetical loss in fair value of our derivatives would be offset by gains in
the value of the underlying transactions being hedged.
Interest Rate Currency Sensitive
Sensitive Financial Financial Combined
Instruments Instruments Portfolio
VaR as of December 29, 2001 $ 6.3 $ 0.2 $ 6.1
VaR as of December 30, 2000 11 .7 0.1 10.2
Euro Conversion
On January 1, 1999, twelve of the 15 member countries of the European Union adopted the euro as their common legal currency. As
of December 29, 2001, we had fully converted all systems and processes in the nine euro-zone countries where we have operations. No
material adverse effect on our financial position or results of operations has arisen as a result of the conversions and costs associated
with the euro conversion were not material. Since the implementation of the euro, we have experienced improved efficiencies in our cash
management program in Europe as all intracompany transactions within participating countries are conducted in euros.
Cautionary Statements for Purposes of the Safe Harbor Provisions of the Private Securities Litigation Reform
Act of 1995
The matters in this Annual Report that are forward-looking statements are based on our current expectations that involve certain risks,
including, without limitation: intense competition in the U.S., Europe and Other International; the severe downturn in economic
conditions (particularly purchases of technology products) may continue or worsen; future terrorist or military actions; continued
pricing and margin pressures; failure to adjust costs in a timely fashion in response to a sudden decrease in demand; the potential
for declines in inventory values and continued restrictive vendor terms and conditions; the potential decline as well as seasonal variations
in demand for our products and services; unavailability of adequate capital; inability to manage future adverse industry trends; failure of
information systems; significant credit loss resulting from significant credit exposure to reseller customers and negative trends in their
businesses; interest rate and foreign currency fluctuations; adverse impact of governmental controls and political or economic instability
on foreign operations; changes in local, regional, and global economic conditions and practices; dependency on key individuals and inability
to retain personnel; product supply shortages; the potential termination of a supply agreement with a major supplier; difficulties and
risks associated with integrating operations and personnel in acquisitions; disruption due to reorganization activities; rapid product
improvement and technological change and resulting obsolescence risks; and dependency on independent shipping companies.
We have instituted in the past and continue to institute changes to our strategies, operations and processes to address these risk factors
and to mitigate their impact on our results of operations and financial position. However, no assurances can be given that we will be
successful in these efforts. For a further discussion of these and other significant factors to consider in connection with forward-looking
statements concerning us, reference is made to Exhibit 99.01 of our Annual Report on Form 10-K for the fiscal year ended December 29,
2001; other risks or uncertainties may be detailed from time to time in our future SEC filings.
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